Krafton Q3 Operating Profit Falls 35.5% on Event Costs, but Cumulative Results Hit Record High with Additional Buyback
Krafton reported a 35.5% year-over-year drop in Q3 operating profit due to Gamescom costs, yet achieved record cumulative revenue and profit for the first nine months while announcing an additional 300 billion KRW share buyback.
South Korean game developer Krafton released its preliminary third-quarter results on November 10, following an investor briefing. The company reported Q3 revenue of 971.4 billion KRW, up 11.6% year-over-year, but operating profit fell 35.5% to 225 billion KRW. Krafton attributed this decline primarily to concentrated marketing and participation costs associated with the Gamescom exhibition in Germany held in August.
Despite the single-quarter dip, Krafton’s cumulative performance for the first three quarters reached all-time highs for the period. Total revenue from January to September amounted to 3.633 trillion KRW, a 50.9% increase year-over-year, while cumulative operating profit rose 13.8% to 1.1975 trillion KRW. This divergence suggests that core business growth remains robust, with short-term expense fluctuations not altering the underlying profitability trend.
In terms of capital allocation, Krafton’s board approved an additional share buyback plan on November 3, committing 300 billion KRW to repurchase and cancel its own shares. Combined with approximately 400 billion KRW already spent on buybacks and 99.6 billion KRW in dividends paid through the third quarter, the total shareholder return for the year stands at 917.2 billion KRW. This figure represents the highest annual shareholder return since the company initiated its return policy in 2023, signaling management’s confidence in cash flow generation and a commitment to enhancing per-share value through equity reduction.